1. The Future of Spectrum Allocation Efficiency and Balance Stephen Farrugia Engineering Director

2. ACMA Radcoms Conference, 11 December 2006 Overview General Discussion –Demand for Spectrum is increasing –Who wants to use it? –How can we maximise it’s “value”? Broadcast Spectrum Specifics

3. ACMA Radcoms Conference, 11 December 2006 Demand from consumers is increasing –More media content –Better quality –When I want it –Anywhere I want it

4. ACMA Radcoms Conference, 11 December 2006 How to satisfy these demands? –Cable/Fibre –Satellite –Terrestrial

5. ACMA Radcoms Conference, 11 December 2006 Consumer Score Card Technology Service 0 1

6. ACMA Radcoms Conference, 11 December 2006 Who wants to use Spectrum? –Community groups –Broadcasters –Telecommunications operators –Internet Service Providers –Government

7. ACMA Radcoms Conference, 11 December 2006 How can we maximise it’s value? –Make the most of the digital era –Match spectrum to desired purpose –Minimise guard bands

8. ACMA Radcoms Conference, 11 December 2006 Technology is improving –Processing power –Receiver battery consumption –Displays –Storage

9. ACMA Radcoms Conference, 11 December 2006 Matching terrestrial spectrum with its best use –Lower frequencies are bandwidth limited but have great wide area propagation –High and Ultra high frequencies provide good point to multi-point coverage at a usable bandwidth –UHF and above incur high obstruction losses so best used for point to point

10. ACMA Radcoms Conference, 11 December 2006 Minimising guards bands –Application specific –Can be managed by restricting equipment performance

11. ACMA Radcoms Conference, 11 December 2006 What about the Broadcast Spectrum? –MF –HF –VHF Band 1 –VHF Band 2 (plus 5A) –VHF Band 3 –UHF

12. ACMA Radcoms Conference, 11 December 2006 What strengths does the current Television Broadcast Spectrum have? –One to many coverage –Portable/mobile coverage –Local content –“Wide-area” coverage

13. ACMA Radcoms Conference, 11 December 2006 Digital television provides an opportunity –More or higher quality services in the same bandwidth or less bandwidth required –Better frequency management through use of SFNs and adjacent channel use –Allows analog services to switch off as the Australian framework has been implemented as a replacement technology

14. ACMA Radcoms Conference, 11 December 2006 The “Cliff-effect” Quality Distance Digital Analog PROBLEM

15. ACMA Radcoms Conference, 11 December 2006 So who’s interested in the current Broadcast Spectrum? –Broadcasters – they want to keep it –Some Telco’s see value in it for 4G –Government sees value in broadening its use For example the use of Channels A and B

16. ACMA Radcoms Conference, 11 December 2006 Digital Dividend –Existing assignments versus re-stacking the spectrum

17. ACMA Radcoms Conference, 11 December 2006 To maximise the value of the spectrum post analog closure, some re-stacking of the spectrum will be required –This will have cost impacts on broadcasters and the general public –Who pays for it? Presumably those who get the benefit, ie Government or the new spectrum owners?

18. ACMA Radcoms Conference, 11 December 2006 Conclusion Demand for spectrum is increasing The use of digital technology provides the opportunity for greater spectrum efficiency

19. ACMA Radcoms Conference, 11 December 2006 Conclusion There will be a Digital Dividend after the closure of analog television but beware of the cliff effect The value of the dividend needs to take into account the costs to incumbent operators and consumers